Kremlin Bids for High Finance

Outgoing Russian President Vladimir Putin last week signaled his determination to see Russia become a financial powerhouse. 'I am sure that Russia should become one of the main financial centers in the world,' he said.

The financial community is hoping his successor, Dmitry Medvedev, takes his words to heart by making key reforms to insolvency laws and accounting rules, and improving the recognition of foreign judgments, which together could unleash a fresh wave of funds from Western banks.

Financiers have in recent years shown an increasing willingness to buy Russian companies. Last year private equity firms raised $59bn to finance deals in emerging economies, with the strongest growth coming from Russia. And the fledgling Russian derivatives market is growing at a phenomenal pace, with turnover now at £26bn.